Asia Highlights, Friday, 17 February 2016
- Whether Trump concerns, fund trouble, or simply overstretched positions getting reined in early ahead of long weekend, the USD and equities came under pressure and bonds rallied despite another batch of very strong US numbers.
- US Feb Philadelphia Fed Survey 43.3 from 23.6 vs Mkt 18, highest since 1984.
- Initial Claims 239k from 234 vs Mkt 245.
- US Jan Housing Starts 1246k from 1279 vs Mkt 1226; Permits 1285k from 1228 vs Mkt 1230.
- Fed's Lockhart - Yellen kept all options open, Mar live for a hike. Inflation, retail data mean economy stronger, moving towards inflation goal sooner than thought.
Asia FX and News -
- BBG: Australia and New Zealand will work together as they engage with other TPP members on the way forward for the Agreement. "Australia - NZ Prime Minister Bill English.
- BBG: The specific contents of the newly formed U.S.-Japan economic dialogue have yet to be decided, Japanese Finance Minister Taro Aso says in Tokyo.
- BBG: RBNZ reviewing whether banks hold an adequate level of capital, and whether individual banks hold capital that is a true reflection of the risks they are exposed to.
- FT: Eurozone finance ministers will miss next week's deadline for an agreement with the International Monetary Fund to release €7bn in aid to Greece, forcing the bailout fight into the Dutch and French election season.
- BBG: At least some temporary liquidity facility loans due Thursday and Friday had not been rolled over as of noon Beijing time, two traders at banks say.
- BBG: Malaysia exports conversion exceeded imports by $372.9m and $741.3m in December 2016 and January 2017, respectively, Financial Markets Committee said.
- China's central bank will tightly balance injections and draining of liquidity on the interbank market as it keeps monetary policy on a "neutral and prudent" course, Financial News reports.
- The Asia session saw limited movements in the FX market. All of the majors were trapped in 20-30 pip ranges.
- USDJPY bounced off the overnight low of 113.06, though the bounce was only limited to 113.50, with the Nikkei still trading in a heavy manner.
- GBPUSD saw small bids come in, and the pair traded back above 1.2500 towards 1.2511 from 1.2476.
- EURUSD was seen within a 20 pip range, as were the antipodeans.
- AUDUSD was still contained by offers in the crosses, notably in AUDNZD and AUDJPY, and gains above 0.7700 were limited.
- NZDUSD meanwhile managed to hold above the 0.7200 handle. Once again, the Asia stock bourses were mostly seen in red.
Still To Be Released -
08:30 GMT - SE: CPI (Jan) 4cast: -0.7% m/m (Mkt: -0.7 Prev: 0.5)
08:30 GMT - SE: CPI (Jan) 4cast: 1.4% y/y (Mkt: 1.5 Prev: 1.7)
08:30 GMT - SE: CPIF (Underlying) (Jan) 4cast: -0.7% m/m (Mkt: -0.7 Prev: 0.5)
08:30 GMT - SE: CPIF (Underlying) (Jan) 4cast: 1.6% y/y (Mkt: 1.7 Prev: 1.9)
09:00 GMT - EU: Current Account (nsa) (Dec) EUR bn (Prev: 40.5)
09:00 GMT - EU: Current Account (sa) (Dec) EUR bn (Prev: 36.1)
09:30 GMT - UK: Retail Sales (ex Auto Fuel) (Jan) 4cast: 1.3% m/m (Mkt: 0.7 Prev: -2)
09:30 GMT - UK: Retail Sales (ex Auto Fuel) (Jan) 4cast: 4.4% y/y (Mkt: 3.9 Prev: 4.9)
09:30 GMT - UK: Retail Sales (inc Auto Fuel) (Jan) 4cast: 1.2% m/m (Mkt: 1 Prev: -1.9)
09:30 GMT - UK: Retail Sales (inc Auto Fuel) (Jan) 4cast: 3.8% y/y (Mkt: 3.4 Prev: 4.3)
09:30 GMT - IT: Current Account (Dec) EUR mn (Prev: 4640)
14:00 GMT - BE: BNB Consumer Confidence (Feb) (Prev: 0)
15:00 GMT - US: Leading Indicator (Jan) % m/m (Mkt: 0.5 Prev: 0.5)
Events & Auctions:
US: Sovereign Debt to be Rated by Moody's
17:30 GMT - SE: Riksbank's Jochnick Speaks in New York